Business Context and Reporting Period
This Form 8-K is filed by PluriStem Life Systems, Inc. (formerly A.I. Software, Inc.), a Nevada corporation, for the reporting period of July 1, 2003. The filing primarily addresses a change in the company's principal independent accountants.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. However, it notes that the financial statement reports for the fiscal years ended June 30, 2002, and 2001, prepared by the previous accountant (Davidson & Company), were modified to include a paragraph regarding uncertainty about the company's ability to continue as a going concern.
Material Changes
- Accountant Change: On July 1, 2003, the company engaged Ernst & Young, Israel ("E&Y") as its new principal independent accountants.
- Dismissal: Marc Lumer & Company ("Lumer") was dismissed on July 1, 2003. Lumer had been appointed on May 9, 2003, following the dismissal of Davidson & Company on May 7, 2003.
- Disagreements: The company states there were no disagreements with Lumer regarding accounting principles, financial statement disclosure, or auditing scope during the period from the fiscal years ended June 30, 2002 and 2001 through July 1, 2003.
Outlook, Risks, and Contingencies
Going Concern Risk: The filing highlights a significant historical risk, noting that the audit reports for the 2001 and 2002 fiscal years contained a modifying paragraph concerning the company's ability to continue as a going concern.
Consultation: E&Y was not consulted on any accounting matters or audit opinions prior to their appointment. Lumer provided a letter to the SEC confirming their agreement with the statements made in this report.
Key Facts for Investor Verification
- Verify the current status of the "going concern" uncertainty noted in the 2001 and 2002 audit reports.
- Confirm the reasons for the rapid succession of three different accounting firms (Davidson, Lumer, and E&Y) within a two-month period in 2003.
- Review the attached letter from Marc Lumer & Company (Exhibit 16.1) for any additional context on the dismissal.
- Check subsequent filings for updated financial statements prepared by E&Y to assess current liquidity and solvency.